Regulators shutter 2 more banks

The FDIC said the failures of Heritage Community Bank and Security Savings Bank will cost the Deposit Insurance Fund a combined $100.7 million.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Catherine Clifford, CNNMoney.com staff writer

Map
Where the banks are failing
Bank failures and foreclosures keep mounting

NEW YORK (CNNMoney.com) -- State bank regulators closed two more banks on Friday, the 15th and 16th banks to fail this year, as the worsening recession pulled more regional banks underwater.

The announcement marks the seventh consecutive week of bank failures being announced on a Friday evening.

The Federal Deposit Insurance Corp. said that Security Savings Bank of Henderson, Nevada, had $238.3 million in assets and $175.2 million in deposits as of December 31, 2008. Heritage Community Bank of Glenwood, Illinois, had assets totaling $232.9 and deposits totaling $218.6 million as of December 5, 2008.

Combined, the two bank failures will cost the Deposit Insurance Fund approximately $100.7 million.

Bank of Nevada agreed to assume all of Security Savings Bank's deposits, and purchase approximately $111.3 million of the failed bank's assets. The FDIC will retain the remaining assets, and estimates that the cost to its fund will be $59.1 million.

Heritage was purchased by MB Financial Bank, N.A., of Chicago, Illinois, which agreed to acquire all of the failed bank's deposits and $230.5 million of the failed bank's assets, said the FDIC, which estimated the cost to its fund at $41.6 million.

Customers will be able to access their deposits with debit cards and checks over the weekend. Those who owe loan payments should continue making those payments.

The FDIC fully insures individual accounts up to $250,000 through the end of 2009.

In all of 2008, 25 banks failed and the FDIC's list of troubled banks grew to 252 during the fourth quarter, marking the highest level since 1994.

Bank failures could cost the FDIC fund $65 billion by 2013, the agency said Friday at its board meeting.

In order to prevent larger banks from failing, the government has injected billions of dollars into those institutions.

On Friday, the government said it had taken control of 36% of Citigroup, which had already received $45 billion from the government. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Sponsors

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.